Fitch keeps India`s ratings unchanged

US-based agency Fitch has kept India`s sovereign rating unchanged at `BBB-`, the lowest investment grade with stable outlook assigned to the country more than a decade ago.The leading rating agency, however, expects India`s growth rate to accelerate to 7.7 per cent in fiscals 2017 and 2018, from 7.1 per cent in fiscal 2016. The government and some commentators in India have been questioning ratings assigned by global agencies arguing the country`s economic fundamentals have improved significantly over the last few years, but not have taken into account by those rating firms. The government`s `Economic Survey 2017` too has slammed the agencies for following "inconsistent" standards while rating India vis-a-vis China, saying they have not taken into account reforms measures like GST, which is a "poor" reflection on their credibility.Fitch had last upgraded India`s sovereign rating from BB+ to BBB- with stable outlook on August 1, 2006. Later, it changed the outlook to negative in 2012 and then again to stable in the following year, though it kept the rating unchanged at the lowest investment grade. In its note on rating, Fitch said, the sovereign ratings at BBB- balance a strong medium-term growth outlook and favourable external balances with a weak fiscal position and difficult business environment.